At the end of the year, SportsWorld completed an asset impairment test and noted that a piece of equipment, with a book value of 12,000, has a recoverable value of $2,000.Calculate the amount of impairment loss on the equipment.

Question

Quizplus · Accepted Answer

The impairment loss is calculated as the difference between the book value and the recoverable value. Therefore, $12,000 (book value) - $2,000 (recoverable value) = $10,000 impairment loss.

At the End of the Year, SportsWorld Completed an Asset